Accidents can, and often do happen. And, that’s what insurance is for.
Liability coverage gives you protection from the damages incurred on another party, both bodily and to their property, in the event that you are responsible for an auto accident. This is the most basic form of auto insurance coverage, and is required within all 50 states in order for a driver to take the road legally. If you drive any car, truck, SUV, motorcycle, or other automobile, liability auto insurance is something you simply cannot go without.
Collision coverage helps take care of damages incurred to your property, most commonly your vehicle, in the event of an auto accident. Once you have paid your deductible, collision coverage pays you the remaining cash value of your car, but will not exceed it. Depending upon the make, model, year, and condition of your vehicle, it may not be beneficial for you to purchase collision coverage, especially if your deductible is close in price to the value of your car.
Comprehensive coverage safeguards you from damages incurred from an event or circumstances other than an auto collision accident. This includes incidents like storms and natural disasters (such as fires, hurricanes, floods, tornadoes, earthquakes, and tsunamis), vandalism and theft, broken or shattered windshields, and damages to your car caused by animals or falling objects. Some describe this type of coverage as protection from “acts of God,” or scenarios that are out of your control. Like collision coverage, you will want to assess how useful comprehensive auto insurance will be to you based upon your vehicles worth and deductible.